Correlation Between TK Chemical and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both TK Chemical and DAEDUCK ELECTRONICS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TK Chemical and DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TK Chemical and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on TK Chemical and DAEDUCK ELECTRONICS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TK Chemical with a short position of DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TK Chemical and DAEDUCK ELECTRONICS.
Diversification Opportunities for TK Chemical and DAEDUCK ELECTRONICS
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 104480 and DAEDUCK is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TK Chemical and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd and TK Chemical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TK Chemical are associated (or correlated) with DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of TK Chemical i.e., TK Chemical and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between TK Chemical and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon TK Chemical is expected to under-perform the DAEDUCK ELECTRONICS. In addition to that, TK Chemical is 1.03 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about -0.07 of its total potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about 0.0 per unit of volatility. If you would invest 818,000 in DAEDUCK ELECTRONICS CoLtd on September 3, 2024 and sell it today you would lose (3,000) from holding DAEDUCK ELECTRONICS CoLtd or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TK Chemical vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| TK Chemical |
| DAEDUCK ELECTRONICS CoLtd |
TK Chemical and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TK Chemical and DAEDUCK ELECTRONICS
The main advantage of trading using opposite TK Chemical and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TK Chemical position performs unexpectedly, DAEDUCK ELECTRONICS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| TK Chemical vs. Nice Information Telecommunication | TK Chemical vs. Tway Air Co | TK Chemical vs. Digital Power Communications | TK Chemical vs. Kisan Telecom Co |
| DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co | DAEDUCK ELECTRONICS vs. Busan Industrial Co | DAEDUCK ELECTRONICS vs. UNISEM Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |